As Discovery is communication-challenged, we don't know the answers to the questions which revolve around the financial woes of the developer:
You might wish to expand on these topics and prepare now to attend the annual meeting (as of this writing, unscheduled) which is perhaps the most important one we've had in our short life as Spanish Oaks. The more people who speak up, stand up and make their feelings known, the more force it will have. This is no time to be passive-aggressive.
It is said that the annual (2009!) meeting is being held off until they get their financial house in better order.
1- Are funds co-mingled from the golf club to the general project?
2- Why is there only about $5000 in the reserve fund for the project? (Note east side road deterioration.)
3- What is being done about the sorry state of our common areas: weeds, erosion to the 'paths,' the broken curbing, the mail area trash? What is the state of our common area landscaping contract?
4- How does the east end mail area get so trashy AND NO ONE IN MANAGEMENT notices until upset owners complain? How can we insure more pro activity?
5- Is it time to seriously talk about eliminating staffing both gates - at least overnight - to reduce expenses? (Speed passes and push button codes would allow entry.)
6- What plan does Discovery have to revitalize the project?
For new owners note: When Daniel Porter passed control to Discovery, we noted a different view of the 'plan' for the community and what appeared to be a relaxed set of design rules. IF THAT HAPPENS AGAIN, we can expect another set of changes. Will this affect us and how?
Tuesday, March 30, 2010
Saturday, March 27, 2010
LAND SNAKES ALIVE!
Here's the first little one I've seen this spring - apparently run over, squashed and drying... but you have to remember they hatch in batches and where's there's baby there's mama. This one looks benign, but there are others with nasty fangs to be avoided. A hint - watch out if you plan to take pictures of babies laying in bluebonnets. Remind the kids... snakes are part of life here. Be careful. Look before you thrust your hand into somewhere you can't see.
As cold blooded, they will seek warmth from garages, rocks, and maybe even porches in the evenings and nights.
Also know that baby rattlers have no rattle but do have a full dose of venom.
Like some politicians.
Friday, March 26, 2010
PROPANE... PROPAIN?
I had a call from a rep for Sharp Energy who reads this blog - hello Kim!
She gave me some background on the installation of the new larger propane tank in Spanish Oaks. Things to know: it will exist in a 100 year flood plain which complicates the issue in that measures must be taken to keep it in place in the unlikely event... (it will sit above ground but will be shielded from view.)
It's anticipated to be installed this summer.
Our costs will not be appreciably affected by the larger tank - i.e.: fewer deliveries.
She gave me some background on the installation of the new larger propane tank in Spanish Oaks. Things to know: it will exist in a 100 year flood plain which complicates the issue in that measures must be taken to keep it in place in the unlikely event... (it will sit above ground but will be shielded from view.)
It's anticipated to be installed this summer.
Our costs will not be appreciably affected by the larger tank - i.e.: fewer deliveries.
Wednesday, March 24, 2010
ANNUAL MEETING
...or more and less annual meeting. This year's last year's meeting is looking like it might happen in April. Will there be enough warning for those who might want to travel in for this one? There's sure to be news about financial re-organization or lack thereof.
Tuesday, March 16, 2010
ANOTHER ONE- JUST LIKE THE OTHER ONE
Another road sinkhole has appeared in the back of the project on S.O. Blvd., just like the last one, though in the opposite lane and farther up the road. It's marked with cones.
Friday, March 12, 2010
SALES OFFICE MOVES
Note the new sign fronting the old Sales Offices... Daniel Porter apparently leased these to Discovery and the term has expired. Now it's A Porter Place. Discovery's Sales offices for Spanish Oaks have been moved to the Golf Club Administration Building.
Thursday, March 11, 2010
LCRA EMERGENCY CALL
Robot calls of emergency situation went out to area residents mid afternoon. The recording is a request to limit water usage to only the barest of essentials. Obviously, they are working on some pipe somewhere.
Saturday, March 06, 2010
THE FULL STORY
From today's AMERICAN-STATESMAN
Published: 9:36 p.m. Friday, March 5, 2010
Owners of Spanish Oaks, a 911-acre luxury residential and golf course development in Bee Cave, are in talks with their lenders to revise the terms of a $32 million loan and avert foreclosure.
Daniel Porter, Spanish Oaks' original developer, said that the problem arose when a recent appraisal valued the project at less than the amount required under the terms of the loan from Comerica Bank.
Porter said he couldn't disclose the appraisal amount.
Spanish Oaks, south of Texas 71 and Bee Cave Road, is among the high-end residential projects in Central Texas to run into financial headwinds from the economic downturn. Several others ended up in foreclosure, but Porter said Comerica has indicated its willingness to work with the owners to forestall that outcome.
Under the original vision, the project was to have been completed by 2012 with 436 homes — an estimated $600 million worth of real estate, Porter said.
To date, 270 lots have been sold and 125 homes have been built, with an average price of $1.5 million. Golf Digest has ranked Spanish Oaks Country Club as one of the top private golf courses in the country.
The project is owned by Spanish Oaks LP, a partnership consisting of Ross Perot Jr.'s Hillwood Development Co. LLC, which owns 65 percent; Discovery Land Co. LLC, with 15 percent; and Porter's CCNG Realty Inc., with 20 percent.
Hillwood and Discovery, the project's managing partner, were brought in as investors in 2005, pumping in $20 million along with CCNG, Porter said.
Sales began in April 2002, with the first 25 lots selling that year at an average price of $130,000, Porter said.
In 2004, CCNG sold 65 lots at an average of $160,000. Lot prices peaked in 2008 when they averaged $500,000.
But just 12 lots were sold in 2008, and only six were sold last year, averaging $424,000, Porter said.
"It was like a rock falling out of the sky," Porter said of the sales.
"A lot of people are wanting to do something to try to keep this project from falling into a bad way financially, " Porter said. "It's too good a project."
The loan negotiations involve the golf course, unsold lots and undeveloped land. Porter said the partners have invested $70 million, including the golf course, roads and utilities.
For now, the golf course remains open to members and their guests, although the clubhouse has reduced hours and laid off some employees.
Porter said CCNG has made an offer to the partnership to buy the golf course. A letter of intent was signed, but no binding agreement was reached.
"It's a great project and a great golf course, " Porter said. "The members love it. We just have to work through this."
Discovery oversees Spanish Oaks' golf club, development and sales operations.
In a statement Friday, Michael Meldman, chairman and CEO of Discovery, said the company is working with "the membership and our majority partners to address long-term plans" for the club's operation.
Todd Platt, CEO of Hillwood Investments, said the partners are hoping to find a way to transfer the course to its members.
An attorney for Comerica did not return messages seeking comment.
David Armbrust, Porter's attorney, said that Spanish Oaks has suffered from the slowing economy.
"I think Spanish Oaks is kind of a poster child for the effect the economy has had on western Travis County from the standpoint of a drop in property values that has affected raw land, developed land and individual homes," Armbrust said. "The problem is, there are no transactions, really."
Appraisers can use such market activity to set property values.
Other area projects also have been hit by the lingering economic slump.
Last year, the 468-acre Rocky Creek Ranch off Hamilton Pool Road, where 396 upscale homes were envisioned, became one of the region's biggest residential foreclosures. CB Richard Ellis began marketing the property in November for $17.5 million.
Other foreclosure actions included Vizcaya, a luxury residential development planned on the south shore of Lake Travis; MDR Hollows LP, developer of the Hollows resort on the north shore of Lake Travis; and Avaña, a proposed 1,000-acre residential development at Texas 45 and Escarpment Boulevard.
Spanish Oaks originally encompassed 1,211 acres, but 120 acres were sold to Cypress Realty Inc., which later sold 88 of those to developers of the nearby Shops at the Galleria.
CCNG owns another 77 acres at Spanish Oaks that allow for mixed-use commercial development, Porter said.
Armbrust thinks the region is at the tail end of the major foreclosures and "things are looking up," with more buyers kicking the tires for deals.
Despite its financial distress, Armbrust said Spanish Oaks is "a great project," and "with an improving economy, the future is bright."
"They need some consideration from the bank at this point to get from here to there," Armbrust said.
snovak@statesman.com; 445-3856
Comment: Why do owners have to find this out by the newspaper? Wouldn't the developers generate good will through proactive communication?
Published: 9:36 p.m. Friday, March 5, 2010
Owners of Spanish Oaks, a 911-acre luxury residential and golf course development in Bee Cave, are in talks with their lenders to revise the terms of a $32 million loan and avert foreclosure.
Daniel Porter, Spanish Oaks' original developer, said that the problem arose when a recent appraisal valued the project at less than the amount required under the terms of the loan from Comerica Bank.
Porter said he couldn't disclose the appraisal amount.
Spanish Oaks, south of Texas 71 and Bee Cave Road, is among the high-end residential projects in Central Texas to run into financial headwinds from the economic downturn. Several others ended up in foreclosure, but Porter said Comerica has indicated its willingness to work with the owners to forestall that outcome.
Under the original vision, the project was to have been completed by 2012 with 436 homes — an estimated $600 million worth of real estate, Porter said.
To date, 270 lots have been sold and 125 homes have been built, with an average price of $1.5 million. Golf Digest has ranked Spanish Oaks Country Club as one of the top private golf courses in the country.
The project is owned by Spanish Oaks LP, a partnership consisting of Ross Perot Jr.'s Hillwood Development Co. LLC, which owns 65 percent; Discovery Land Co. LLC, with 15 percent; and Porter's CCNG Realty Inc., with 20 percent.
Hillwood and Discovery, the project's managing partner, were brought in as investors in 2005, pumping in $20 million along with CCNG, Porter said.
Sales began in April 2002, with the first 25 lots selling that year at an average price of $130,000, Porter said.
In 2004, CCNG sold 65 lots at an average of $160,000. Lot prices peaked in 2008 when they averaged $500,000.
But just 12 lots were sold in 2008, and only six were sold last year, averaging $424,000, Porter said.
"It was like a rock falling out of the sky," Porter said of the sales.
"A lot of people are wanting to do something to try to keep this project from falling into a bad way financially, " Porter said. "It's too good a project."
The loan negotiations involve the golf course, unsold lots and undeveloped land. Porter said the partners have invested $70 million, including the golf course, roads and utilities.
For now, the golf course remains open to members and their guests, although the clubhouse has reduced hours and laid off some employees.
Porter said CCNG has made an offer to the partnership to buy the golf course. A letter of intent was signed, but no binding agreement was reached.
"It's a great project and a great golf course, " Porter said. "The members love it. We just have to work through this."
Discovery oversees Spanish Oaks' golf club, development and sales operations.
In a statement Friday, Michael Meldman, chairman and CEO of Discovery, said the company is working with "the membership and our majority partners to address long-term plans" for the club's operation.
Todd Platt, CEO of Hillwood Investments, said the partners are hoping to find a way to transfer the course to its members.
An attorney for Comerica did not return messages seeking comment.
David Armbrust, Porter's attorney, said that Spanish Oaks has suffered from the slowing economy.
"I think Spanish Oaks is kind of a poster child for the effect the economy has had on western Travis County from the standpoint of a drop in property values that has affected raw land, developed land and individual homes," Armbrust said. "The problem is, there are no transactions, really."
Appraisers can use such market activity to set property values.
Other area projects also have been hit by the lingering economic slump.
Last year, the 468-acre Rocky Creek Ranch off Hamilton Pool Road, where 396 upscale homes were envisioned, became one of the region's biggest residential foreclosures. CB Richard Ellis began marketing the property in November for $17.5 million.
Other foreclosure actions included Vizcaya, a luxury residential development planned on the south shore of Lake Travis; MDR Hollows LP, developer of the Hollows resort on the north shore of Lake Travis; and Avaña, a proposed 1,000-acre residential development at Texas 45 and Escarpment Boulevard.
Spanish Oaks originally encompassed 1,211 acres, but 120 acres were sold to Cypress Realty Inc., which later sold 88 of those to developers of the nearby Shops at the Galleria.
CCNG owns another 77 acres at Spanish Oaks that allow for mixed-use commercial development, Porter said.
Armbrust thinks the region is at the tail end of the major foreclosures and "things are looking up," with more buyers kicking the tires for deals.
Despite its financial distress, Armbrust said Spanish Oaks is "a great project," and "with an improving economy, the future is bright."
"They need some consideration from the bank at this point to get from here to there," Armbrust said.
snovak@statesman.com; 445-3856
Comment: Why do owners have to find this out by the newspaper? Wouldn't the developers generate good will through proactive communication?
Wednesday, March 03, 2010
DANIEL PORTER TAKES OVER SALES OFFICES
It seems Spanish Oaks founder Daniel Porter has resumed operations in what has been the Spanish Oaks Sales Offices. There's a new sign which lists two 'groups.'. The question I have is Spanish Oaks Realty one of HIS entities or the Discovery crew.
MORE ON SPANISH OAKS GOLF CLUB
As you'll read below, the golf part of club membership is apparently unaffected.
MESSAGE FROM SOGC BOARD OF DIRECTORS March 2, 2010
On behalf of the SOGC, Inc Board of Directors, thank you for this opportunity to provide current information on the affairs of Spanish Oaks Golf Club.
We last wrote on February 5, 2010 to inform you negotiations were underway to restructure Spanish Oaks’ loan with Comerica Bank and obtain a release of collateral secured by Club assets. Since that time, Spanish Oaks, LP (the ownership group) held conversations with the Board of Governors and continued negotiations with Comerica.
Regretfully, ongoing discussions with the Bank have yet to be resolved.
The limited funds available to operate the Club require a suspension of all services with the exception of golf operations. The course and practice facility will remain open. In addition, a limited lunch menu will be served from 11:00am – 2:00pm. We apologize for any inconvenience this may cause you and your family and commit to notify you promptly of any further changes.
Thank you for your patience and understanding during this difficult time.
Very Truly Yours,
The Board of Directors
MESSAGE FROM SOGC BOARD OF DIRECTORS March 2, 2010
On behalf of the SOGC, Inc Board of Directors, thank you for this opportunity to provide current information on the affairs of Spanish Oaks Golf Club.
We last wrote on February 5, 2010 to inform you negotiations were underway to restructure Spanish Oaks’ loan with Comerica Bank and obtain a release of collateral secured by Club assets. Since that time, Spanish Oaks, LP (the ownership group) held conversations with the Board of Governors and continued negotiations with Comerica.
Regretfully, ongoing discussions with the Bank have yet to be resolved.
The limited funds available to operate the Club require a suspension of all services with the exception of golf operations. The course and practice facility will remain open. In addition, a limited lunch menu will be served from 11:00am – 2:00pm. We apologize for any inconvenience this may cause you and your family and commit to notify you promptly of any further changes.
Thank you for your patience and understanding during this difficult time.
Very Truly Yours,
The Board of Directors
Tuesday, March 02, 2010
SPANISH OAKS GOLF CLUB CLOSING?
Rumors have been flying. Four separate sources over several days have come forward. HOA manager Pam Chandler either doesn't know or isn't allowed to speak. Yes, she works 'for the HOA' but that's controlled by the developer.
Here's what I believe is happening. For some reason as yet unknown, Discovery Land Company is apparently abandoning management of the Golf Club. Supposedly there's a members' meeting tomorrow at which they will attempt to put together a plan to operate it themselves.
You have to assume Discovery, if they really throw in the towel on golf, must admit their business plan, in this economy at this time, has failed.
The larger story may be how Discovery then continues selling this development as a Golf Club (which they have closed?) It's a bad mark, is poorly handled, and they certainly don't know how to handle rumor control.
And... what's next?
Here's what I believe is happening. For some reason as yet unknown, Discovery Land Company is apparently abandoning management of the Golf Club. Supposedly there's a members' meeting tomorrow at which they will attempt to put together a plan to operate it themselves.
You have to assume Discovery, if they really throw in the towel on golf, must admit their business plan, in this economy at this time, has failed.
The larger story may be how Discovery then continues selling this development as a Golf Club (which they have closed?) It's a bad mark, is poorly handled, and they certainly don't know how to handle rumor control.
And... what's next?
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